RETIREMENT BENEFIT PLANS

9 Months Ended

Oct. 03, 2020

RETIREMENT BENEFIT PLANS

Note K - Retirement Benefit Plans

Note K - Retirement Benefit Plans

The Company has non-contributory defined benefit pension plans covering most U.S. employees. Plan benefits are generally based upon age at retirement, years of service and, for the plan covering salaried employees, the level of compensation. The Company also sponsors unfunded non-qualified supplemental retirement plans that provide certain former officers with benefits in excess of limits imposed by federal tax law.

The Company also provides health care and life insurance for retired salaried employees in the United States who meet specific eligibility requirements.

Significant disclosures relating to these benefit plans for the first nine months of fiscal years 2020 and 2019 are as follows:

	Pension Benefits
	Three Months Ended						Nine Months Ended
	October 3, 2020			September 28, 2019			October 3, 2020			September 28, 2019
Service cost	$	266,435		$	263,852		$	799,305		$	791,558
Interest cost		714,143			879,080			2,142,428			2,637,240
Expected return on plan assets		(1,365,261	)		(1,190,329	)		(4,095,784	)		(3,570,990	)
Amortization of prior service cost		24,845			24,845			74,535			74,535
Amortization of the net loss		325,033			290,548			975,101			871,647
Net periodic benefit cost (benefit)	$	(34,805	)	$	267,996		$	(104,415	)	$	803,990

	Postretirement Benefits
	Three Months Ended						Nine Months Ended
	October 3, 2020			September 28, 2019			October 3, 2020			September 28, 2019
Service cost		10,855			8,533			32,565			24,965
Interest cost		11,667			1,874			35,001			42,566
Expected return on plan assets		(5,589	)		7,938			(16,767	)		(21,025	)
Gain on significant event		—			(227,071	)		—			(227,071	)
Amortization of prior service cost		(2,063	)		(1,268	)		(6,189	)		(3,804	)
Amortization of the net loss		(6,377	)		5,560			(19,131	)		(35,454	)
Net periodic benefit cost (benefit)	$	8,493		$	(204,434	)	$	25,479		$	(219,823	)

The Company’s funding policy with respect to its qualified plans is to contribute at least the minimum amount required by applicable laws and regulations. In fiscal year 2020, the Company expects to contribute $2,690,000 into its pension plans and $50,000 into its postretirement plan. As of October 3, 2020, the Company has made contributions of approximately $400,000into its pension plans, has contributed $10,000 to its postretirement plan and will make the remaining contributions as required during the remainder of fiscal the year. The Company delayed its required pensions payments, as permitted, under the CARES Act until the fourth quarter of 2020.

The Company has a contributory savings plan under Section 401(k) of the Internal Revenue Code (the “401(k) Plan”) covering substantially all U.S. non-union employees. The 401(k) Plan allows participants to make voluntary contributions from their annual compensation on a pre-tax basis, subject to limitations under the Internal Revenue Code. The 401(k) Plan provides for contributions by the Company at its discretion.

The Company made contributions to the plan as follows:

	Three Months Ended				Nine Months Ended
	October 3, 2020		September 28, 2019		October 3, 2020		September 28, 2019
Regular matching contribution	$	178,244	$	125,266	$	551,765	$	418,329
Transitional credit contribution		62,842		62,464		209,191		240,840
Non-discretionary contribution		13,036		17,390		593,084		622,519
Total contributions for the period	$	254,122	$	205,120	$	1,354,040	$	1,281,688

The non-discretionary contribution of $550,286 made in the nine months ended October 3, 2020 was accrued for and expensed in the prior fiscal year.